What is the Cryptocurrency Mining in Crypto World

in Steem Alliance4 months ago (edited)

Greetings everyone,

Free image from freepik

I hope you are all well. In the last two articles I talked about cryptocurrency airdrops. So I thought to talk about cryptocurrency mining in today's article. Because there are some similarities between these two, I thought it would be good to talk about cryptocurrency mining today.

What is cryptocurrency mining

Mining is any activity or procedure used by several cryptocurrencies to generate new coins or tokens based on the blockchain. Here mining is done by users known as miners. Offering new coins to the network is done to contribute processing power. The blockchain rewards miners with new coins as an incentive relative to their blockchain maintenance.

Additionally crypto mining involves,

• To validating cryptocurrency transactions on the blockchain network.
• To inhibiting double spending of digital currencies.
• Adding them to a distributed ledger..

History of crypto mining

This crypto mining has started with the arrival of the first cryptocurrency, bitcoin. It was in 2008 when Satoshi Nakamoto announced the bitcoin Peer-to-Peer electronic money system. And later in 2009 he released bitcoin allowing users to mine new coins.

In this way, users had the opportunity to mine bitcoins for several years and then after the mining was completed, the bitcoins were released to the exchanges at a good market value. At first many people were not confident about this bitcoin mining. But today, among the cryptocurrencies, bitcoin has become the most popular and the most valuable cryptocurrency.

Types of crypto mining methods

Mining is divided into types based on the cryptocurrency being mined and how much funds can be invested in it.

Graphics Processing Unit (GPU) mining, Pool mining, Central Processing Unit (CPU) mining,
Cloud mining, Application-Specific Integrated Circuit (ASIC) mining, FPGA mining, Poof-of classification method and Solo mining can be introduced as those mining methods.

I am currently involved in cryptocurrency mining. That is to mine the coin called Pi. This is a new coin that was given to users for mining 4 years ago. This mining is done through a mobile app. Below is a screenshot of it.

Screenshot taken from my Pi mobile app

For mining, have to go to the app every 24 hours and activate it. Otherwise the added coins will be disabled. Also, if the promotional activities and other tasks provided by them are done successfully, the mining rate will increase. Simply put, the more we contribute to the blockchain, the we will be able to mining coins more.

Although this is a coin that is still in the mining period, Pi coins that have been mined in several times have been exchanged for various goods and services.

Benefits of cryptocurrency mining

• This supports a more efficient mechanism in the blockchain network as cryptocurrency mining adopts a more efficient mechanism when distributing digital rewards to miners.

• From cryptocurrency mining, miners can get rewards so many people can benefit from this. And this creates various economic opportunities.

• Coins mined during mining can then be used by miners to purchase various goods and services.

• This mining method is most effective for new coins and tokens that are looking to launch into the crypto market.

References :-
1, 2, 3

🎀 Thanks for reading 🎀

 3 months ago 

This is an interesting post on cryptocurrency mining that you have shared.

Keep sharing quality post in the community

Thank you so much

Coin Marketplace

STEEM 0.33
TRX 0.14
JST 0.041
BTC 66943.88
ETH 3714.45
USDT 1.00
SBD 5.23